Abstract
Non-practicing entities (NPEs) are firms that build patent portfolios but do not implement the patented technologies in any products, processes, or services (known as patent trolls). NPEs initiate lawsuits primarily not to stop patent infringement, but for the potential monetary profits. We examine how firms shift their innovation strategies in response to heightened NPE litigation risks. We theorize and find that firms targeted by NPEs will subsequently draw more upon their in-house technologies to reduce the legal ground for such lawsuits, whereas firms in related technology areas will shift their innovation activities away from areas of high NPE litigation risks.
Original language | English |
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Journal | Academy of Management Annual Meeting Proceedings |
Volume | 2022 |
DOIs | |
Publication status | Published - 6 Jul 2022 |
Event | 82nd Annual Meeting of the Academy of Management 2022: A Hybrid Experience, AOM 2022 - Seattle, United States Duration: 5 Aug 2022 → 9 Aug 2022 |